(a) Except as provided in subsection (c), if the drawee of
a draft pays or accepts the draft and the drawee acted on the
mistaken belief that (i) payment of the draft had not been
stopped pursuant to section 4-403 or (ii) the signature of the
drawer of the draft was authorized, the drawee may recover the
amount of the draft from the person to whom or for whose benefit
payment was made or, in the case of acceptance, may revoke the
acceptance. Rights of the drawee under this subsection are not
affected by failure of the drawee to exercise ordinary care in
paying or accepting the draft.

(b) Except as provided in subsection (c), if an instrument
has been paid or accepted by mistake and the case is not covered
by subsection (a), the person paying or accepting may, to the
extent permitted by the law governing mistake and restitution,
(i) recover the payment from the person to whom or for whose
benefit payment was made or (ii) in the case of acceptance, may
revoke the acceptance.

(c) The remedies provided by subsection (a) or (b) may not
be asserted against a person who took the instrument in good
faith and for value or who in good faith changed position in
reliance on the payment or acceptance. This subsection does not
limit remedies provided by section 3-417 or 4-407.

(d) Notwithstanding section 4-215, if an instrument is paid
or accepted by mistake and the payor or acceptor recovers payment
or revokes acceptance under subsection (a) or (b), the instrument
is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has
rights as a person entitled to enforce the dishonored instrument.

Note: WV Code updated with legislation passed through the 2015 Regular Session
The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.